By Tiernan Ray

Here are some things going on this morning in your world of tech:

Shares of NXP Semiconductor (NXPI) are up 52 cents, or 0.9%, at $58.76, after Raymond James’s Steven Smigle raised his rating on the stock to Strong Buy from Outperform, “We think NXP Semiconductors will continue to see outsized, ~20% growth from its Identification business and we think the company has solid businesses in its other markets as well.”

Reflecting on Samsung Electronics’s (005930KS) Galaxy S5, Smigle writes that “Although somewhat expected, a recent teardown of the Galaxy S5 by Chipworks confirmed NXP won back its NFC controller from Broadcom. The secure element win was a mild surprise (though some regions may not use a secure element).”

Shares of Yelp (YELP) are up $1.01, or 1.6%, at $68.26, after Neil Doshi of CRT Capital raised his rating on the shares to Buy from “Fair Value,” citing a more reasonable valuation after the recent share-price decline.

Shares of Nimble Storage (NMBL) are down 36 cents, or 1%, at $31.96, despite an initiation at Buy from Sterne Agee & Co.’s Alex Kurtz, with a $43 price target.

Analysts continue to make the case today for buying high-flying names in the wake of the Nasdaq sell off through Monday. J.P. Morgan’s Doug Anmuth reiterates his positive views on Facebook (FB), Priceline (PLCN), Netflix (NFLX), and Pandora (P), citing Facebook and Priceline as the top 2 large cap names in his coverage.

Writes Anmuth, “Most of our discussions with investors point to initial concerns around rising interest rates, but quickly turn toward positioning and valuation.”

“Importantly, we do not believe fundamentals across the group have changed much in recent weeks. Our conversations suggest less appetite for TAM and revenue multiple stories, with increasing preference toward earnings power. 1Q earnings over the next few weeks will be important, providing management teams a forum to discuss current fundamentals, but it does feel like some investors are also thinking about 2Q/summer seasonality a bit earlier than usual.”

Facebook shares are up $1.92, or 3.3%, at $60.11.

Morgan Stanley chip analyst Joseph Moore offers an update on the firm’s survey of semiconductor distributors, writing that “1Q expectations improved a bit from three months ago, with 51% of respondent expecting growth up from 32% in December. Additionally, 50% of respondents expect Q2 to be in line with normal seasonality and 29% expect it to be stronger. Recall, distribution sales in Q2 are typically up low to mid single digits q/q, driven mostly by strength in Industrial.”

Pacific Crest analysts Weston Twigg, John Vinh and Michael Bowen today pen a think piece about Google’s (GOOG) “Project Ara,” an effort of Google’s “Advanced Technology and Projects group,” whose aim is to let users of smartphones “fully customize phones and replace modules as needed (cameras, chips, batteries, etc.).” Google is set to host a developer conference focused on the technology April 15th and 16th, and the authors think first devices built with the technology might show up next year.

Twigg, who covers 3-D printing names, sees benefits for that industry in the ability to make modular components on demand.

The authors also see Ara as being disruptive to the phone ecosystem, writing “Project Ara has a big opportunity to disrupt a largely closed mobile hardware market, similar to how Android disrupted the closed mobile OS market. It fits well with Google’s overall mobile strategy, and we think, if it can significantly expand the market control of Android, it will further enhance Google’s ecosystem benefits and further drive down TAC. Still, there are some points to note, as Google has not yet been hugely successful in the hardware business, and it is difficult to gauge what the mobile industry landscape will look like when Project Ara finally comes to realization. Google’s product offering through Project Ara could provide a unique alternative to its primary competitor, Apple (AAPL).”

Shares of Comcast (CMCSA) are up 52 cents, or 1%, at $49.37, and Time Warner Cable (TWC) shares are up $1.16, or 0.9%, at $137.07, as representatives of the company go before the Senate Judiciary Committee this morning to make their case for their proposed merger, after yesterday holding a press conference to push that case.

Add a Comment

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comment

There is 1 comment

APRIL 15, 2014 9:29 P.M.

Kafantaris wrote:

Welcome Ara, the modular smartphone from Google.
Smart, very smart.
Thank you Google. You're still thinking and acting outside the box.
The smartphone is indeed the gift that keeps on giving -- and for all of us.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.